Science & Technology
Science and Technology
Science and Technology
Fri, February 20, 2009 Zacks Bull and Bear of the Day Highlights: Telemig Celular, Motorola, Ingersoll Rand, Emerson Electric and Textron
CHICAGO--([ BUSINESS WIRE ])--[ Zacks Equity Research ] highlights Telemig Celular Participações S.A. (NYSE: TMB) as the Bull of the Day and MotorolaInc. (NYSE: MOT) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Ingersoll Rand (NYSE: IR), Emerson Electric (NYSE: EMR) and Textron (NYSE: TXT).
Full analysis of all these stocks is available at [ http://at.zacks.com/?id=2676 ].
Here is a synopsis of all five stocks:
[ Bull of the Day ]:
We are keeping our Buy recommendation on Telemig Celular Participações S.A. (NYSE: TMB). Despite the weak economic conditions throughout the world, Telemig posted great results for the fourth quarter 2008.
We believe that the stock remains attractively priced, given the company's positive short-term growth trends. Additionally, a more relaxed monetary policy in Brazil and the company's proposed dividend are very encouraging.
Finally, we believe Telemig's valuation will converge with that of Vivo in the upcoming quarters. In the medium term, Telemig will be incorporated into Vivo, creating considerable synergies.
[ Bear of the Day ]:
We downgrade our rating to Sell for MotorolaInc. (NYSE: MOT), a leading manufacturer of mobile handsets, network infrastructure and cable products. This follows our assessment of overall economic conditions and further analysis of the mobile handset business following the company's disappointing financial results for full-year 2008.
Motorola's handset division continues to lose market share as it contends with soaring operating losses. Cell phone sales in the last reported quarter registered a drop of 53% year-over-year. Additionally, the company suspended future dividend payment to shareholders.
We are not convinced that valuation levels will improve over the next three to six months without a major restructuring initiative as the company faces economic headwinds, lower overall worldwide demand for its handsets, a lack of high-end competitive PDA wireless devices, and reduced visibility for near-term revenue improvement.
Latest Posts on the Zacks [ Analyst Blog ]:
Comparing Manufacturing Declines
The total decline in factory output since the recession started is 12.3%. However, the annualized rate of decline over the last 3 months is 31.7%. This is a very serious situation. Fortunately, manufacturing makes up a much smaller part of the economy than it did in any of the previous declines (pretty much true that it has been smaller in each successive recession).
This is not good news for any firm, but it is particularly bad for capital goods firms. If factories are idle, the last thing the owners want to do is expand capacity. Firms like Ingersoll Rand (NYSE: IR), Emerson Electric (NYSE: EMR) and Textron (NYSE: TXT) are examples of the sorts of firms that are hurt by the downturn in industrial production.
Get the full analysis of all these stocks by going to [ 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
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