Science & Technology
Science and Technology
Science and Technology
Thu, February 19, 2009 Zacks Bull & Bear of the Day Highlights: SunPower, Georgia Gulf, Brink?s Home Security, Tyco International and General Motors
CHICAGO--([ BUSINESS WIRE ])--Zacks Equity Research picks SunPower Corp. (Nasdaq: SPWRA) as Bull of the Day and Georgia Gulf Corp. (NYSE: GGC) as Bear of the Day. In addition, the analysts at Zacks Equity Research discuss the latest on Brink's Home Security Holdings (NYSE: [ CFL ]), Tyco International (NYSE: [ TYC ]) and General Motors Corp. (NYSE: [ GM ]).
Full analysis of all these stocks is available at: [ http://at.zacks.com/?id=2678 ]
Bull of the Day
SunPower Corporation's (Nasdaq: SPWRA) geographically diversified fortunes appear greener given the very high growth potential in the alternative energy industry, and specifically solar power energy, higher captive generation of panels, declining silicon cost and assured silicon supply.
In addition, extension of the ITC in the U.S., resolution of tariffs in Spain, higher average conversion efficiency, improved silicon usage, and gradually improving ASPs, adds visibility to the story.
Accordingly, we maintain our BUY recommendation on SPWRA common stock with a six-month target price of $40.00. Price appreciation to our near-term target price represents 24.6% upside potential.
Bear of the Day
Georgia Gulf Corporation (NYSE: [ GGC ]) is a leading North American manufacturer and marketer of two integrated chemical product lines, chlorovinyls and aromatics. The company also manufactures vinyl-based building and [ home improvement ] products.
Georgia Gulf overpaid for the acquisition of Royal Plastics, a supplier of housing products. The acquisition was entirely financed with debt, and the company is in danger of violating debt covenants. The remaining product lines of the company are suffering from overcapacity.
GGC is expected to report losses in the near term on the back of rising feedstock and energy costs. Demand for the company's products is also expected to remain weak due to the downturn in the US housing and auto markets.
Recent Analysis from the Analyst Blog
Brink's Locked In at a Hold
Today we have initiated coverage on shares of Brink's Home Security Holdings (NYSE: [ CFL ]) with a Hold rating and price target of $20.00 per share.
CFL installs, services, and monitors security alarm systems throughout North America. The company was spun-off from its former parent, The Brink's Company (BCO) in October of 2008.
As the second-largest security monitoring firm in the county, trailing only the ADT unit of Tyco International (NYSE: [ TYC ]), the company is well positioned to add market share in a highly fragmented industry. CFL estimates that only 18% of households in the United States currently have a monitored system, suggesting that there is ample capacity to expand the overall market size.
GM Announces Viability Plan
General Motors Corp. (NYSE: [ GM ]) indicated that it needs an additional $16.6B in aid from the Treasury, for a total of $30B. Additionally, $6B is to come from foreign governments.
These payments will be needed by 2011, and the loan should be fully repaid by 2017. 47,000 workers will be laid off, of which 21,000 are in the US and 26,000 outside of the US. 37,000 are blue-collar workers and 10,000 are white-collar workers. The future of Hummer and Saab are in doubt, and may be shut or sold. 5 factories may be closed and a voluntary retirement/resignation program was announced.
Can it be improved? Sure. There is no mention of new global markets nor any potential global alliances. No mention of changing the product mix. And what about management changes and pension/health care restructuring?
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=2649 ].
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.
About the Analyst Blog
Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.
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.
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