Zacks.com 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: Celera (NASDAQ: CRA), Brink’s Home Security Holdings (NYSE: CFL), Tyco International (NYSE: TYC), General Motors Corp. (NYSE: GM) and Advanced Micro Devices Inc. (NYSE: AMD).
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Here are highlights from Thursday’s Analyst Blog:
Celera Drug Down to Sell
We downgrade Celera (NASDAQ: CRA) shares from Hold to Sell based on the company's worse-than-expected calendar 4th quarter 2008 financial performance and bleak outlook for 2009.
In the 4th quarter, ended December 31, 2008, total revenue was $47.3 million, compared to $40.3 million in the prior year quarter, up 17.4% year on year and 3.3% sequentially. The 4th quarter results in 2007 and 2008 included revenues from Berkeley HeartLab, Inc. (BHL) and Atria Genetics Inc., which were acquired during the 4th quarter of calendar 2007. Total revenue in calendar 4th quarter of 2008 was slightly short of our estimate of $48 million.
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.
AMD Spin-Off a Positive
On Wednesday, shareholders of Advanced Micro Devices Inc. (NYSE: AMD) approved a transaction that allows the computer chip maker to spin off factories and sell a stake of the company in a deal with the Abu Dhabi government. AMD will spin off its manufacturing facilities to form The Foundry Co. in a joint venture with Abu Dhabi's Advanced Technology Investment Co.
The transaction is expected to close by March 2, 2009. AMD stockholders approved a proposal to issue (i) 58 million shares of the company's common stock and warrants to purchase 35 million shares of its common stock and (ii) 35 million shares of the company's common stock upon exercise of those warrants to an affiliate of the Mubadala Development Company PJSC, on the terms described in the proxy statement related to the Special Meeting of Stockholders that was held today in Austin, Texas.
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